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Monday 11 December 2017
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Forex – Dollar Little Changed Vs. Rivals as Tax Reform Optimism Fades

Forex10 hours ago (Dec 06, 2017 05:15AM ET)

Dollar holds steady vs. rivals in cautious trade

Investing.com – The dollar was little changed against other major counterparts on Wednesday, as optimism sparked by the vote of a major U.S. tax reform plan began to fade as traders were waiting for the bill to be finalized and amid other U.S. political concerns.

Sentiment on the greenback weakened due to the possibility of a U.S. government shutdown if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday.

The U.S. dollar was initially boosted after the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.

Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace.

Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.30 by 05:15 a.m. ET (09:15 GMT).

EUR/USD was steady at 1.1825, while GBP/USD declined 0.44% to trade at 1.3384 amid ongoing Brexit concerns after the UK and the European Union failed to reach an agreement to move to the next stage of negotiations.

Elsewhere, the yen was higher, with USD/JPY down 0.44% at 112.11, while USD/CHF eased up 0.11% to 0.9885.

The Australian dollar was weaker, with AUD/USD down 0.22% at 0.7590, while NZD/USD gained 0.31% to 0.6897.

Earlier Wednesday, the Australian Bureau of Statistics said that gross domestic product expanded by 0.6% in the third quarter, disappointing expectations for a growth rare of 0.7 and fdown from 0.9% in the three months to June.

Year-over-year, Australia’s economy grew at a rate of 2.8% in the last quarter, compared to expectations for a growth rate of 3.0%.

Meanwhile, USD/CAD dipped 0.08% to 1.2677.

Forex – Dollar Little Changed Vs. Rivals as Tax Reform Optimism Fades

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